Wellmark BCBS Reserves Under Scrutiny in Iowa
Two Iowa state senators want to know why Wellmark Blue Cross & Blue Shield is holding $1.3 billion in reserves now that it no longer plans to participate in the state health insurance exchange. Sen. Jack Hatch (D) and Sen. Matt McCoy (D) have asked the Iowa Insurance Commissioner to investigate.
In a letter to the commissioner, the senators noted that the Iowa Insurance Department supported the reserve amount in 2011 in light of the demands of the federal Affordable Care Act and made note then of Wellmark’s anticipated participation in the state HIX.
“The company’s decision to decline participation in Iowa’s exchange removes a major component of the justification for the [sizeable] reserves," the letter states.